Indonesia Needs An Investment Of IDR 5,900 Trillion For 2 Years To Return To The Upper Middle Income Country

The atmosphere of the city of Jakarta. (Angga Nugraha / VOI)

JAKARTA - Minister of National Development Planning / Head of Bappenas Suharso Monoarfa said that to restore Indonesia's status to an upper middle income country in 2022, economic growth of 5 percent per year is needed.

"In addition, to boost economic growth of 5 percent in 2021, total investment in the economy of around Rp. 5,817 trillion to Rp. 5,912 trillion is needed," he said, Tuesday, February 9.

Meanwhile, investment realization in 2020 was only IDR 4,897 trillion due to a contracted economy. Thus, in 2021, an additional investment of IDR 919.52 trillion-1,014.32 trillion is needed from 2020 so that the economy can grow in the range of 4.5-5.5 percent.

"One way of investing to accelerate economic recovery is through the construction of housing and office facilities for the State Capital (IKN)," he said.

Suharso added that Indonesia's position fell to a lower middle income country because GDP per capita had fallen to 3,806 US dollars in 2020.

In fact, Indonesia was previously included in the upper middle income country category in 2019 because it had a GDP per capita of 4,174 US dollars.

"This decline is reflected in the realization of Indonesia's economic growth throughout 2020 which contracted by minus 2.07 percent," he said.